Israeli Prime Minister Benjamin Netanyahu promised on Monday to eliminate Israel's trade surplus with the United States, a move likely to be closely watched by world leaders as President Donald Trump's tariff policy roils global markets.
"We intend to do it very quickly," Netanyahu said as he sat beside Trump in the White House Oval Office. "We think it's the right thing to do, and we're going to also eliminate trade barriers."
Netanyahu was the first foreign leader to meet with Trump at the White House since the U.S. president announced a sweeping tariff policy last week that has hammered global financial markets and raised concerns of a recession.
The United States, Israel's closest ally and largest single trading partner, last year had a $7.4 billion goods trade deficit with Israel.
Under Trump's new policy, Israeli goods face a 17% U.S. tariff. When asked if his administration planned to reduce tariffs on Israeli goods, Trump made no promises.
"We've been ripped off and taken advantage of by many countries over the years, and can't do it anymore," he said.
Israel had already moved to cancel its remaining tariffs on U.S. imports last Tuesday. The two countries signed a free trade agreement 40 years ago and about 98% of goods from the United States are now tax-free.
The outcome of Trump's tariff talks with Netanyahu could signal to other foreign leaders whether Trump is willing to bend on the levies and how best to approach him.
Trump extended the surprise invitation in a phone call on Thursday with Netanyahu when the Israeli leader raised the tariff issue, according to Israeli officials.
© 2025 Thomson/Reuters. All rights reserved.